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Perceived Quality of Counterfeit…

PERCEIVED QUALITY OF COUNTERFEIT PERFUME AND ORIGINAL PERFUME

PERSEPSI KONSUMEN TERHADAP KUALITAS PARFUM PALSU DAN PARFUM ASLI

by:
Caleb Elijah Turk1
David Paul Elia Saerang2
1,2
Faculty of Economics and Business
International Business Administration (IBA), Management Program
University of Sam Ratulangi Manado
email: 1calebeturk@hotmail.com
2
d_saerang@lycos.com

Abstract: Perfume is one type of product that often has prestigious prices tied with quality to attract consumers,
which (as often is seen with high-priced products) arouses the interests of counterfeiters to copy the originals.
Perfume comes in many fragrances which are offered to customers. Fragrances have their own characteristics
in order to match with the various tastes, moods, and occasions they may want them for. Perfume also can
reflect certain life-styles. Perfume creates different perceived values depending on the consumer. The purpose of
this research is to determine the differences of consumers’ perceived quality between counterfeit and original
perfume. This research uses comparison method based on data gathered from 100 respondents from the Faculty
of Economics and Business, Sam Ratulangi University. By using independent sample t-test with SPSS program
to analyze the data, this research found difference in consumer perception of counterfeit perfume and original
perfume. As seen from the mean difference, original perfumes have more positive perception by consumers
compared to counterfeit perfumes. Company management who produce original perfume should consider the
market for their products in Manado, as the people here perceive original perfume to be better than counterfeit.

Keywords: consumers perceived quality, counterfeit perfume, original perfume

Abstrak: Parfum adalah salah satu jenis produk yang sering memiliki harga prestisius diikat dengan kualitas
untuk menarik konsumen (seperti yang sering terlihat pada produk dengan harga tinggi), membangkitkan
keinginan para pemalsu untuk meniru aslinya. Parfum ditawarkan dalam berbagai aroma (wewangian) yang
ditawarkan pada konsumen. Wangi parfum memiliki karakteristik tersendiri agar sesuai dengan selera
konsumen, suasana hati, situasi dan kebutuhan parfum masing-masing konsumen. Parfum juga dapat
mencerminkan gaya hidup tertentu. Parfum menciptakan nilai yang dirasakan berbeda yang sangant bergantung
pada kepribadian konsumen. Tujuan penelitian ini untuk mengetahui perbedaan persepsi konsumen terhadap
kualitas antara parfum palsu dan asli. Penelitian ini menggunakan metode perbandingan berdasarkan data yang
dikumpulkan dari 100 responden dari Fakultas Ekonomi dan Bisnis Universitas Sam Ratulangi Manado. Hasil
uji independen sample t-test dengan program SPSS untuk analisis data, temuan penelitian bahwa terdapat
perbedaan persepsi konsumen antara parfum palsu dan parfum asli. Seperti terlihat dari mean difference, antara
parfum original yang memiliki persepsi lebih positif dibandingkan parfum palsu pada konsumen. Manjemen
perusahaan yang memproduksi parfum asli sebaiknya lebih memperhatikan pasar produknya di kota Manado,
karena konsumen disini lebih menyukai parfum asli dibandingkan parfum yang palsu.

Kata kunci: persepsi konsumen terhadap kualitas, parfum palsu, parfum original

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INTRODUCTION
Perfume is one type of product that often has prestigious prices tied with quality to attract consumers,
which (as often is seen with high-priced products) arouses the interests of counterfeiters to imitate the originals.
Perfume comes in many various fragrances which are offered to many various consumers. Fragrances have their
own characteristics infused in them in order to match with the immensely various tastes of consumers, various
moods the consumers may be in, and various situations and special occasions they may need or want them for or
both. Perfume, among other things, can also reflect certain life-styles. Based on that view, perfume creates
different perceived values depending on the consumer. It is important to know whether consumers perceive
original perfume as higher quality than counterfeit perfume or whether they do not perceive original perfume as
higher quality than counterfeit perfume, because if consumers do consider original perfume to have higher
quality than counterfeit perfume, then there is potential market for original perfume. However, if consumers do
not consider original perfume to have higher quality than counterfeit perfume then there is no practical market
for original perfume.
Original perfume costs more than counterfeit perfume for many reasons. Original perfume companies
have costs for researching good ingredient combinations, researching into allergy likelihood of ingredients (and
picking less risk ingredients), researching into customer wants and tastes, marketing costs, etc. Whereas
counterfeiters (for the most part) require only to try to imitate the original---much lower cost, even if the
counterfeit’s quality is close to (or exactly) the same as the original. This results in the price of original perfume
to be higher than the prices of its counterfeit competitors, even if the counterfeiters are able to produce
counterfeit perfume that is very close to the same (or exactly the same) quality as the original perfume. So if the
consumers perceive counterfeit perfume quality equal to or greater than original perfume quality (whether
accurate or not), then there’d be little to no motivation to buy original perfume with its higher price instead of
counterfeit with its lower price.
The study of customer value continues to become significantly more important in both research and
practice. Analysis and critical evaluation of the different trends and approaches found to date in this research
field, encompassing the development of perceived and desired customer value research, the relationships
between the Customer Value (CV) construct and other central marketing constructs, and the linkage between
CV and the company interpretation of the value of the customer, like customer lifetime value (CLV). Although
customer value has become the object of much investigation only during the last couple of years, the value
concept has always been the fundamental basis for all marketing activity (Holbrook, 1994:22).
Delivering superior value to customers is an ongoing concern of management in many business markets
today, and the value concept is considered one of the most popular constructs among business managers and
academia. Market share and ultimately corporate profitability depend heavily on perceived customer value to
the extent of stating that value can be considered the fundamental basis for all marketing activities. Zeithaml has
suggested that perceived value can be regarded as a consumer’s overall assessment of the utility of a product (or
service) based on perceptions of what is received and what is given. She referred to this assessment as a
comparison of a product or service’s ‘get’ and ‘give’ components. The most common such definition of value is
the ratio or trade-off between quality and price. (Zeithaml, 1988)
Identifying and creating customer value is regarded as an essential prerequisite for long-term company
survival and success. Understanding the way customers judge and value a service or product is crucial to
achieving a competitive advantage. Scientists and practitioners have recognized the power of the customer value
concept in identifying value for customers and managing customer behavior (Graf & Mass, 2008).
What are the meanings of quality and value in consumers’ eyes? In what way are perceptions of quality
and value developed in the minds of consumers? Do they carry similarities throughout various consumers and
products? In what way do consumers relate quality, price, and value in their contemplations of products and
services? This research strives to supply the solutions to those questions by: expounding the concepts of price,
quality, and value with the perspective of consumers, associating the concepts in a model, and evolving
propositions about the concepts, inspecting the accessible evidence at hand in support of the propositions, and
proposing places of which further research is required. In order to reach these goals, a formal assessment of past
research was augmented through exploratory investigation of quality and value in the product category of
perfume.

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Research Objective
To ascertain whether significant difference does exist in consumers’ perceived quality between
counterfeit perfume and original perfume.

THEORETICAL REVIEW

Marketing
Kotler and Keller (2009:287) defined marketing as a process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational goals. That is, marketing is the process that companies use in order to sell products and services
to gain profit. It includes such things as market research, advertising, sales, delivering of products, etc.

Marketing Research
Marketing research is research done to aid organizations in solving problems, realizing opportunities,
and making decisions in order to benefit the organization. It often deals with consumer behavior and consumer
perception, as what consumers think is important to the market. Malhotra (2007:7) defined it as the systematic
and objective identification, collection, analysis, dissemination, and use of information for the purpose of
improving decision making related to the identification and solution of problems and opportunities in marketing.

Consumer Behavior
In order to develop products and market them in an appealing way to their target audience, businesses
must understand their consumers and potential consumers. The taste and perspective of different people on
different products and services vary---some positive and some negative. Consumer behavior studies the
phenomena of how various stimuli as thoughts, culture, and peer pressure affect people’s reasons and means to
purchase various products and services. Why (the reason), when (the time), and how (the means) is what
consumer behavior (the field of study) aims to study and understand. Actual consumer behavior is the behavior
which consumers have toward products and services while purchasing (or not purchasing) them. A mix of many
different things affects the behavior of consumers, including psychological, social, economical, anthropological
situations, and their environment. For marketers to recognize the actions that consumers will take, it is important
to study consumer behavior. Marketers have done a great many things to try to fully understand consumer
behavior, and continue to study because consumer behavior changes constantly (and often rapidly). It is more
easily understood with definitions of consumer behavior and its theories by experts on the subject. Bello
(2008:2) explained, The term consumer behavior is defined as the behavior that consumers display in searching
for, purchasing, using, evaluating and disposing of product and services that they expect will satisfy their needs.
Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money,
effort) on consumption related items. This includes what they buy, why they buy it, when they buy it, where
they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact
of such evaluation on future, and how they dispose of it.

The purchasing decisions of consumers are based on various factors, comparing products and choosing
which product is most fitting and they are most comfortable with. Solomon (2011:34) added that consumer
behavior may be affected by skillful marketing, which enhances the motivation and even behavior of
consumers; for example, by giving products and services more attractive designs. Reid and Bojanic (2009:87)
also points out that there are two main factors influencing consumer behavior: external factors and internal
factors. External factors including: culture, socioeconomic level, social and belonging needs---in other words,
peer-pressure. Internal factors such as: self esteem, experience, personality, self-image, and safety needs.

An excellent explanation of consumer behavior is also stated by Noel (2009:22), describing the model of
consumer behavior discussing the factors influencing consumer behavior in a most intellectual way. While
consumers live their lives, buying, utilizing or consuming, and dismissing or disposing of companies’ products
and services, there exist various factors which often (if not always) affect their (the consumers’) behavior. Noel
(2009:22) groups these factors into three conceptual domains:

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1. External influences
2. Internal processes (including consumer decision making)
3. Post-decision processes

PERCEPTION/ MARKET
SENSATION RESEARCH INFO
SEARCH

COGNITION

CHOICES
AFFECT STRATEGY

PREFERENCES
BELIEFS

COMMUNICATION
CONSUMER

Figure 1. Influences on and of Consumer Behavior

Source: Lars Perner (2008)

Profitable consumers are paramount for businesses to gain revenue. Consumers are what companies are
concerned about. They research and make developments in order to better understand the desires of consumers.
Research empowers companies to strategize for creating products and services which appeal to their target
markets.

Consumer Perception
Two different people may interpret the same thing they experience differently. How creatures receive
and process (or interpret) stimuli is the description of perception, as is seen in this definition of perception: The
process by which an individual selects, organizes, and interprets information inputs to create a meaningful
picture of the world. (Kotler and Keller, 2009:788)

Quality perception of consumers is said to be an essential and measured determinant for product choice.
It is for this reason that the understanding exists of consumer perception influencing customers’ amount of
satisfaction, and in so doing also influencing their purchasing and application choices. Consumer application
and purchase of any product greatly is dependent upon what their perception is of said product. Perception may
be developed (in favor or against said product) by how effectively (or ineffectively) said product is marketed.
Organizations recognize that getting customer’s attention and making positive impressions is important, and so
may even change the color and shape of a product (among many other things) based on their data of consumer
perception.

Perceived Quality
Perceived quality, as defined by Aaker (1991:85-86), can be defined as the customer's perception of the
overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives.
Perceived quality is, first, a perception by customers. It thus differs from several related concepts, such as actual
or objective quality (the extent to which the product or service delivers superior service), product-based quality
(the nature and quantity of ingredients), and manufacturing quality (conformance to specification, the zero
defect goal).

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Perceived quality is intangible. It is feeling or perception about the product or service---what the consumer
thinks the quality of the product or service is. It doesn’t have to reflect the actual quality; it is simply the
perception of the consumer.

Previous Research
Bian and Moutinho (2011) hold the positions that consumers have more favorable perceptions of
original products than of counterfeit products, with exceptions of financial risk and security concerns; that
significant perception differences concerning counterfeit products were identified between counterfeit product
owners and non-owners; that, in contrast, counterfeit product ownership had no significant effect on consumers’
evaluations of original products; that several perception dimensions appeared to be significantly influential on
counterfeit behavioral intention, with brand personality playing the dominant role; and that evidence of an
interaction effect of counterfeit ownership with consumers’ perceptions of counterfeit products on counterfeit
product purchase intention did not exist.

Research Hypothesis
The hypothesis for this research is:

H1 : There is significant difference of consumers’ perceived quality between counterfeit perfume and original
perfume.

RESEARCH METHOD

Type of Research
This research is comparison type of research where the difference of perceived quality between
counterfeit perfume and original perfume is investigated.

Place and Time of Research

The object of the research is the consumers of perfume in Manado, SULUT, Indonesia from January
until April 2015.

Research Procedure

Counterfeit
Perfume
Consumer Perceived
Quality

Original Perfume

Figure 2. Research Procedure

Source: Research Method

Population and Sample

Population is generalized to the object/subject that have a certain quantity and characteristic which is
required by the researcher to study and reach conclusions (Sugiyono, 2005:55). The population in this research
is all the perfume consumers in Manado.

The sample of this research is perfume consumers in Manado, as many as 100 respondents. The
sampling design is convenience sampling which is considered as the best way of gathering basic information
quickly and efficiently. Convenience sampling is collecting information from members of the population who
are conveniently available to provide it (Sekaran & Bougie, 2010:276).

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Data Collection Method

This research used several methods to collect data, namely questionnaires and library studies.
Questionnaires were distributed to consumers of perfume in Manado, respectively 100 sheets. While calculating
weight rating customer questionnaires using a Likert scale. The Likert scale was associated with a statement
about one's attitude towards something. Whereas library studies is a data collection method whereby relevant
literature was studied to acquire a theoretical overview of the perceived quality of perfume concept.

Data Analysis Method

Independent Sample T-test

A t-test is any statistical hypothesis test in which the test statistic follows a Student's t distribution, if the
null hypothesis is supported. It is most commonly applied when the test statistic would follow a normal
distribution if the value of a scaling term in the test statistic were known. When the scaling term is unknown and
is replaced by an estimate based on the data, the test statistic (under certain conditions) follows a Student's t
distribution. This t – test is used to analyze the difference between consumers’ perception of counterfeit perfume
and original perfume.

Pearson Product Moment Correlation

In Bivariate Correlations, the relationship between two variables is measured. The degree of
relationship (how closely they are related) could be either positive or negative. The maximum number could be
either +1 (positive) or -1 (negative). This number is the correlation coefficient. A zero correlation indicates no
relationship.

RESULTS AND DISCUSSION

Questions

X1.1 Do you agree that the perfume that you use reflects your personality?
X1.2 Do you agree that the perfume you use can increase your self-confidence?
X1.3 Do you agree that the perfume you use lasts?
X1.4 Do you agree that the price of the perfume that you use meets the quality of the product?
X1.5 Do you agree that the perfume that you use doesn’t make marks?
X1.6 Do you agree that the packaging of the perfume you use doesn’t easily break and preserves the quality of
the perfume in question?

Results
General Information of Respondents
From the questionnaires were 100 respondents. 100% were between the ages of 0 – 20 years old. 64%
were female, and 36% were male. 100% were students.

Validity and Reliability Test

The validity test results show that all the indicators of independent variables in questions X 1.1 – X1.8 are
valid because the correlation value for each is above 0.3.

The Reliability results show that the instrument is acceptable because Cronbach’s Alpha coefficient has
a value of 0.688; it proves that the data is up to standard and can move forward to the next step. The Validity
result shows that the validity for each variable are good where the values are above the minimum level of 0.60.
It means that all independent variables are above the minimum level and the results are reliable, as shown in the
table below.

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Table 1. Reliability Statistics
Cronbach's Alpha N of Items
.688 6
Source: Data Processed 2015

Hypothesis Testing

Normality Assumption

Normality test data is a common thing to do before a statistical method. Purpose of the test for normality is to
determine whether the distribution of the data follows a normal distribution pattern close to the distribution of
data with a normal distribution pattern (i.e. data distribution is not skewed to the left or right).

Analysis:

Ho : The population is normally distributed

Ha : The population is not normally distributed

The criteria of decision making is based on the probability

If the probability value > 0.05 then Ho is received

If the probability value ≤ 0.05 then Ho is rejected

As seen from the table below, Ha is true.

Table 2. One-Sample Kolmogorov-Smirnov Test

X1.1 X1.2 X1.3 X1.4 X1.5 X1.6
N 200 200 200 200 200 200
Normal Mean 3.1300. 3.0900 3.0800 3.0700 3.0550. 3.2450
Parametersa,b Std. Deviation 1.07652 1.17849 1.21283 1.15836 1.18702 1.07272
Most Extreme Absolute .173 .185 .191 .164 .178 .205
Differences Positive .173 .185 .191 .164 .178 .205
Negative -.166 -.160 -.123 -.149 -.152 -.144
Kolmogorov- 2.447 2.622 2.705 2.321 2.524 2.904
Smirnov Z
Asymp. Sig. (2-tailed) .392 .125 .790 .201 .853 .861
a
Test distribution is Normal.
b
Calculated from data.
Source: Data Processed 2015

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T-test

T-test is used to determine the partial effect of each independent variable to dependent variable. T-test value is
obtained by comparing value of tcount with ttable. If tcount is higher than ttable, Ho is rejected and Ha is accepted.

Table 3. Independent Samples Test

Levene's Test
for Equality
of Variances t-test for Equality of Means
95% Confidence
Interval of the
Sig. (2- Mean Std. Error Difference
F Sig. t df tailed) Difference Difference Lower Upper
a
X1.1 EVA .036 .850 7.403 198 .000 1.00000 .13507 .73364 1.26636
EVNAb 7.403 197.782 .000 1.00000 .13507 .73363 1.26637
X1.2 EVA 1.927 .167 7.277 198 .000 1.08000 .14841 .78733 1.37267
EVNA 7.277 194.661 .000 1.08000 .14841 .78730 1.37270
X1.3 EVA 8.394 .004 9.770 198 .000 1.38000 .14124 1.10147 1.65853
EVNA 9.770 189.464 .000 1.38000 .14124 1.10139 1.65861
X1.4 EVA .951 .331 6.107 198 .000 .92000. .15066 .62291 1.21709
EVNA 6.107 196.266 .000 .92000. .15066 .62289 1.21711
X1.5 EVA 6.958 .009 8.364 198 .000 1.21000 .14467 .92472 1.49528
EVNA 8.364 183.754 .000 1.21000 .14467 .92458 1.49542
X1.6 EVA .155 .694 5.426 198 .000 .77000. .14190 .49017 1.04983
EVNA 5.426 197.196 .000 .77000. .14190 .49016 1.04984
a
Equal variances assumed
b
Equal variances not assumed
Source: SPSS 19, Year 2015

The table above provides information about the difference between Original and Counterfeit Perfume Quality
measured by six indicators which are X1.1 until X1.6. The information interpretation of the table above is as
follows:

1) X1.1 – X1.6 normality test results show that both groups of subjects in the study had a normal distribution.
2) X1.1, X1.2, X1.4, and X1.6 homogeneity test results show that the variance between the study samples is
homogeneous.
3) X1.3, and X1.5 homogeneity test results show that the variance between the study samples was not
homogeneous.
4) X1.1 – X1.6 show the average perception of quality for original perfume is greater than the average perception
of quality for counterfeit perfume, with t values for all questions above 5.4, showing that H a is acceptable.
5) That means there is significant difference of consumer perception between the quality of original perfume
and counterfeit perfume, and that consumers perceive original perfume to be better quality than counterfeit
perfume.

Discussion

As seen in the data analysis above, comparing the Mean Differences using independent sample t-test of
consumer perception of Pricing between Original and Counterfeit of Perfume Quality, the result shows that
there exists mean difference between Original and Counter Fait Perfume Quality and it is supported by a level of
significant. That means that Original and Counterfeit of Perfume Quality have a significantly different consumer
perceived value, and based on the comparison of mean and t value as Positive, Original Perfume Quality is
better than Counterfeit Perfume Quality. This coincides with Bian’s and Moutinho’s (2011) findings that
consumers have more favorable perceptions of original products than of counterfeit products.

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Respondents have more positive perception of Original Perfume because it reflects from the quality
itself. Respondents feel that the scent that comes from original perfume has more power and longer durability.
Some of the respondents have the perception that original perfume will increase their self confidence and
performance in public, while counterfeit perfume couldn’t do that (as they perceive it). Counterfeit perfume has
more negative perception from respondents because respondents aren’t satisfied with the quality.

Many imitation perfumes have exactly the same designer names, almost identical labels, boxes, bottles
and very similar scents! It’s really not that easy since counterfeiters have become masters of their crime with the
aid of modern digital imaging and printing techniques. They are capable of producing almost identical replicas
of all the major leading perfume brands on the market today. Consumer may never really know, until they
experience the actual fragrance which may be close to but not exactly as it should be. Consumers discover that
the perfume does not last as long, perhaps as little as one hour instead of half a day or longer as is the case with
original designer perfume.

The other side that the price bounded with high quality of perfume is one additional factor of why
respondents have more positive perception of original perfume rather than counterfeit. Price sometimes
determines the prestige of a product as long as it comes with high quality. Respondents might be satisfied if they
can afford to purchase original perfume with its luxury price bounded together with quality.

CONCLUSION AND RECOMMENDATIONS

Conclusion

There are significant differences in Consumers’ Perception of Perfume Quality between Original and
Counterfeit. Consumer Perception of Perfume Quality for Original Perfume is better than for Counterfeit
Perfume.

The importance of this finding is that it shows there is potential market for original perfume in Manado.
Knowing that consumers’ perception of original perfume is better than that of counterfeit perfume aids
researchers in seeing the potential market for original perfume in Manado, because it shows that there is fairly
good probability that consumers will buy the original when they have opportunity to do so. It implies that
original perfume with its higher price can still compete fairly well against counterfeit perfumes.

Recommendations

1. Company management should care about the Consumer Perfume Quality Perception and about Original and
Counterfeit Perfume Quality, since there is a significant difference in Perfume Quality Perception between
Original and Counterfeit. Perfume Quality Perception of Original is better than Counterfeit.
2. Company management who produce original perfume should consider the market for their products in
Manado, as the people here perceive original perfume to be better than counterfeit.
3. Future replications of this model might consider investigating the mediating effect of differences in Perfume
Quality Perception between Original and Counterfeit.

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